Jakarta waits for market recovery before city-owned firms IPO
The Indonesia Stock Exchange (IDX) Composite Index has fallen more than 40 percent since the beginning of the year, making it the world’s worst-performing bourse.
Jakarta governor Pramono Anung has announced that initial public offerings (IPOs) for city-owned water utility PAM Jaya and Bank Jakarta must wait for more favorable market conditions due to the Jakarta Stock Exchange's poor performance. The Composite Index has plummeted over 40% since the start of the year, the world's worst-performing bourse.
Despite this concerning outlook, Anung remains committed to the IPO plan and has urged the companies' executives to proceed, stating he will greenlight the IPO once the market rebounds. The Jakarta administration retains majority control of both entities post-IPO, ensuring the city's continued influence. A proposed regional regulation would safeguard Jakarta's majority ownership of PAM Jaya and Bank Jakarta, barring any transfer of management or authority to external parties.
Anung had previously expressed optimism about the companies' potential listing in 2027, with Bank Jakarta's president director Agus Haryoto Widodo targeting June 2027, contingent on market circumstances.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
